2025: The year SA’s Housing market roared back to life

• Rate cuts triggered a surge in bond applications and approvals
• Affordability improved as deposits and borrowing costs dropped
• Western Cape and Gauteng kept pulling the market forward

SA quietly turned a corner in 2025

‍2025 will be remembered as the year SA’s property market finally broke free from the post-pandemic hangover.

Lower interest rates. A more confident banking sector. Households starting to breathe again as incomes improved.

It wasn’t loud. But it was real.

BetterBond’s National Head of Sales, Bradd Bendall, sums it up plainly:

“Throughout the year we saw steady, month-on-month momentum, stronger applications, stronger approvals, and a clear return of buyer confidence.”

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Key trends that defined this year

• Rate cuts were the catalyst with cheaper capital = more deals
• Bond applications up 14.6% year-on-year by Q3
• Deposit requirements fell sharply, especially for first-time buyers
• Gauteng led in volumes, with almost half the country’s bond activity at times
• Western Cape dominated value, lifestyle plus governance = out-performance
• Pretoria quietly became SA’s new hot growth node
• Free State & Northern Cape posted the highest growth rates early in the year
• Renovation plans surged which is a sign of confidence and reinvestment
• First-time buyer activity lifted meaningfully, especially in metro-adjacent areas
• The top-end recovered strongly with demand for R3m+ homes rising
• Women buyers led the market, close to 70% of all homeowners
• Buyers are older,  the average first-time buyer is now 37

This wasn’t one isolated spike, this was broad-based improvement.

The Bendall takeaway

‍“Lower interest rates and more accessible financing allowed thousands more South Africans, especially first-time buyers to enter the market. This is extremely positive for continued growth into 2026.”

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The opportunity going forward

‍The data is clear has 2025 marked a true turning point.

Consumer confidence improved. Lending conditions eased. Regions that were dead quiet two years ago suddenly showed life again.

If the SARB sticks to a stable rate path, and if household incomes keep rising, the foundation laid this year could become the launchpad for a more robust 2026.

This was the year buyers returned with intent and not just in the Western Cape. South Africa’s property cycle just moved out of neutral and back into drive.

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